A consequence of a negative externality is that social costs __________ private costs, and the efficient level of output __________.

A. equal; does not require any type of government intervention
B. are less than; requires the government to create a subsidy
C. are greater than; requires the government to impose a tax
D. are greater than; requires the government to create a subsidy
E. are less than; requires the government to impose a tax


Answer: C

Economics

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